Use this objectives-and-stakeholders page to identify aims, explain stakeholder effects and judge conflicts using case evidence.
TCH is a small bakery producing pastries and cakes. It operates in the secondary sector. The added value of TCH's products has increased since it opened 3 years ago. TCH uses non-financial methods to motivate its 6 employees. TCH's business objectives have changed since it started up. One of its new objectives is to expand. Many businesses use external recruitment when they expand.
Outline two reasons why TCH's business objectives might have changed.
Reason 1:
Reason 2:
Award 1 mark for each relevant reason (max 2).
Award 1 mark for each relevant reference to this business (max 2).
Points might include:
- Previous objectives have been achieved / previous objectives were unrealistic [k] at the bakery [app]
- Change of owners/managers [k] over the last 3 years [app]
- Changes in the government objectives/legal controls [k] affecting secondary sector businesses [app]
- Change in customer preferences / demand / follow new trends [k] so may need more/less than 6 employees [app]
- Change in competition [k] which may be why want to business to expand [app]
Other appropriate responses should be credited.
To use words from the stem as application, the reference must be appropriate (i.e. make sense) in relation to the point being made.
The following words are likely to be appropriate for this question:
- Bakery
- Pastries/cakes
- Small (business)
- 3 years
- Secondary sector
- 6 employees
- Expand/expansion
Other appropriate examples can be credited.
FSW is a multinational company with operations in 6 countries. It manufactures steel for use in the construction industry. Quality assurance is used to ensure quality production. FSW has many stakeholder groups who are interested in its activities. The Managing Director knows FSW's business creates external costs. She is aware that pressure groups try to influence business decisions.
Identify one objective each of the following stakeholder groups might have:
Employees:
Customers:
Award 1 mark per objective (max 2).
Points might include:
Employees:
- Increased pay/wages/fair wages/regular pay
- Better/safe working conditions
- Access to training
- Job security
- Have contract of employment
- Work provides motivation / opportunities for promotion / improved status / job satisfaction
Customers:
- Safe/reliable products
- Value for money/reasonable prices
- Well-designed/good quality products
- Reliable/good service
Other appropriate responses should be credited.
Only award first response given for each stakeholder group.
DCN is a large chemical company. It has 8000 employees across its 3 factories. DCN has agreed to set up a joint venture with a glass making business to develop a new type of environmentally friendly packaging. DCN's Managing Director said: 'There are disadvantages to a joint venture. The companies have different leadership styles and business objectives. We will need to look at ways to overcome possible communication barriers.'
Define 'business objective'.
Award 2 marks for a full definition. Award 1 mark for a partial definition.
A statement of a specific target that a business works towards [2]
OR A statement of a specific target to be achieved. (They should be SMART) [2]
Partial definition e.g. target/goal [1]
OR Something the business works towards [1]
Do not award examples as this does not explain the term.
For 2 marks needs the idea of 'target' and that it is something to work towards.